National Republican., 1887-03-01


Dec. 81, 1885,. SIS, ,625, ,34S 35
The preceding statements show a gratifying
increase In the gross revenue OF the Company,
and, Notwithstanding the prevailing low rates,
the increased expenditures rendered necessary
by the enforced economies OF the previous year,
and reduction In the income from invest
ments, there Is reasonable increase In the net
The net results of the lines east of Pittsburgh
and Erie were 49, 796, ,953. .09 after deducting the
Gums properly chargeabie thereto, and the pay.
ment of a dividend of five per cent, there re-
mained q balance of 62,lS2,00i40, from which
was deducted the sum Of 81, 300, $500, properly
chargeable to profit and loss. leaving 3S9l,-
1850 TO be carried to the credit of that ac-
count. This sum. which Is less than one per
cent on the capital stock of the Company,
represents the amount Of profits expended
during the year in strengthening and improy-
ing your properties, and which, on the basis OF
strict division between expenses and capital
expenditures, might also have been distributed
among the shareholders. But twill hardly be
contended that, with the serious responsibility
resting upon your Company for the leases and
obligations of many other large, corporations,
lions incident TO transportation interests in
this country, this amount is greater than should
have been thus permanently invested out OF
your current revenues.
The charge ofsl ,667. 1894 to your profit and
loss account during the years 1885 and 1886,
being the amount advanced 70 the Pennsyl-
yania Company to meet the deficit occurring
in 1885 in the operation of your western lines,
and for other purposes, was properly made, In
view OF the fact that your Company is respon-
sible for all Liabilities connected with these
lines, and such sum could not be returned to
your treasury unless that company increased
Its obligations by borrowing this amount; and
It's profit and loss account. 1t does not consist
of cash, but Of property unavailable for such
purpose, and necessarily held 10 protect Its
account with the sum above stated, It will be
seen, by reference thereto, that IL was neces-
sary for that company TO- charge against that
Construction bonds of the Pittsburgh, Fort
Wayne and Chicago Railway Company, which
II paid under the terms OF the lease OF that
road, and for which II receives no securities
and also an additional amount, being Dor
tion of the depreciation In the value OF the
Jefersonyille, Madison and Indianapolis Rail.
road stock resulting from the construction Of
1t viii be noted that the freight rates show
slight Improvement on oil divisions east OF
Pittsburgh and Erie, but that on the United
Railroads of New Jersey Division the increased
expenses more than offset the additional rev.
enue. There was an increased movement of
both passengers and tonnage; aud while there
was slight decrease in the through freight on
both the Main Line and United Railroads of
New Jersey, there was large gain In the local
topnsge OF all the lines. Upon your Main Line
nearly ninety'two per cent. of the tonnage was
made up Of local freight
The Philadelphia and Erie Railroad Dlvis-
ion shows an improvement.in net results, and
was more than able to provide for all It's fixed
Ihe loss 70 your company upon the United
Railroads of New Jersey slightly exceeded that
of last year. The exceptional service required
upon that division, In connection with the OK.
pensve character of its terminals, seems To
preclude the possibility of operating 1t as eco
nomically as the other roads in your system.
There has been expended for construction,
equipment and real estate as follows
Pennsylvania Railroad and
branches es..,.,,.,...,,y,.........,, S1,89O3ls 40
United Railroads of New jersey. 468 l69 53
Philadelphia and Trenton railroad ll7553 10
And for Improvements and extern
siOns on branch and auxiliary
lines operated by the company 5ll, ,352 52
Advances on acconnti of con-
s,TuotiOn Of new branch and